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Pharos
PHAROS

Safety Scores

Maturev6.95

Methodology v6.95. Version history →

Letter grades from A+ to F for every tracked stablecoin, plus contagion simulation to model cascading failures.

Get notified when a safety grade changes. Set up alerts →

Frequently Asked Questions

How are stablecoin safety grades calculated?

Each stablecoin is scored across five dimensions: peg stability (historical deviation and depeg events), liquidity depth (DEX pool size, volume, and protocol diversity), resilience (collateral quality, custody model, and blacklist capability), decentralization (governance type and chain infrastructure), and dependency risk (exposure to upstream stablecoins). Dimension scores are weighted and combined into a composite 0–100 score, then mapped to a letter grade from A+ to F.

What does the contagion simulation show?

The contagion simulator models cascading failures in the stablecoin ecosystem. You select a stablecoin to "fail" and the simulation traces dependency chains: if stablecoin A uses stablecoin B as collateral, and B fails, A's grade degrades proportionally to its exposure. This reveals hidden systemic risk: which coins look safe in isolation but are fragile under stress.

How often do safety grades change?

Grades are recomputed every cron cycle (roughly every 30 minutes) as new data arrives. In practice, most grades are stable day-to-day. Significant shifts happen when peg deviations spike, liquidity pools drain, or governance changes are enacted. You can set up Telegram alerts to get notified the moment a grade changes.

What should I do with this information?

Safety grades are one input into your own risk assessment, not financial advice. Use them to identify which stablecoins carry hidden dependency risk, compare liquidity depth before choosing an exit route, and stress-test your portfolio assumptions with the contagion simulator. The grade breakdown on each coin's detail page explains exactly what drove the score.

Why do most stablecoins receive a C grade?

A C grade (score 50–64) is the statistical center of the grading distribution. It means the coin meets baseline requirements but has meaningful weaknesses in at least one dimension — typically limited liquidity, moderate dependency risk, or weaker decentralization. Only coins that excel across all five dimensions reach A or B territory.